Loading...
HomeMy WebLinkAboutAgr 2012-12-05 (Town Manager)FOURTH AMENDMENT TO TOWN MANAGER'S EMPLOYMENT AGREEMENT This AMENDMENT TO THE TOWN MANAGER'S EMPLOYMENT AGREEMENT ("Amendment") is effective as of N-v. , , by and between The Town of Tiburon ("Town") and Margaret A. Curran ("Employee"). RECITALS A. The Town employs Employee as its Town Manager, pursuant to an Employment Agreement effective October 25 2006 and amended effective October 2, 2007, October 2, 2008 and July 15 2009 ("Manager's Agreement"). B. The Town Council has conducted annual performance evaluations of Employee as set forth in the Manager's Agreement and is very pleased with Employee's performance. The Council finds that the Employee has demonstrated management and leadership skills that compare favorably to persons holding similar positions in similar agencies. C. The Town's policy is to offer compensation packages that are competitive with similar employers for similar positions so as to maintain the highest quality staff to serve the public. To continue to maintain a competitive compensation package for Employee so as to retain Employee as Town Manager, and to motivate continued excellent performance, the Council has decided to modify the Manager's Agreement and compensation as set forth in this Amendment and Employee has agreed to such modification. D. Pursuant to Section 4.5(a) of the Manager's Agreement, the Town has loaned $800,000 to Employee secured by a deed of trust in second position on her primary residence, which loan is to be repaid within six (6) months of Employee's separation from Town employ. The Council recognizes that the current housing market may render it impractical to repay the loan within this time period and therefore has decided to extend the repayment period as set forth in this Amendment. NOW, THEREFORE, IN CONSIDERATION OF THE ABOVE RECITALS AND OF THE MUTUAL PROMISES AND CONDITIONS HEREIN, THE PARTIES AGREE AS FOLLOWS: 1. One-Time Retention Allowance. Section 4.8 of the Manager's Agreement is hereby amended to read as follows: To maintain a compensation level competitive with other jurisdictions given Employee's demonstrated skill level and to encourage her continued excellent service, Employee is granted a one-time cash payment of Seven Thousand Five Hundred dollars ($7,500) which shall be paid directly to Employee or directed to her 457 Deferred Compensation Account at her discretion. The Town shall pay this allowance within 15 days of this Amendment. The Council shall not be obliged to grant similar allowances in the future. However, in conjunction with future performance evaluations, the Town Council may, in its sole discretion, consider whether Employee's demonstrated skill level and the compensation practices of similar employers for similar positions warrants payment of a future retention allowance or allowances. 2. Mortgage. Section 4.5(a) of the Manager's Agreement is hereby revised to read as follows: (a) Mortgage. The Town shall provide a second mortgage secured by a deed of trust in no less than a second position on Employee's primary residence (`Manager's Residence") in an amount up to $800,000.00, payable monthly on an interest only basis. The rate will be the same as the LAIF rate and will be adjusted accordingly each year on the anniversary date of the loan. Notwithstanding the foregoing, in no event shall the interest rate exceed 5.5 % annually. Employee will be required to maintain equity of 20% or greater in the Manager's Residence securing the first and second mortgages throughout the life of the loan. Monthly payments will be made through an automatic payroll deduction. The loan shall be fully due and payable (1) sixty days after the Manager's Residence ceases to be Employee's primary residence, unless the property is listed for sale, in which event the repayment is due at close of escrow or (2) within one year of Employee's termination as Town Manager whether the action is voluntary or otherwise; however, this due date shall be further extended for a period of up to one additional year upon presentation by Employee of evidence that the residence is listed for sale and Employee is engaged in a good faith effort to sell the property. 3. Manager's Agreement Otherwise Unchanged. Except as expressly modified by this Amendment, the Manager's Agreement between the Town and Employee shall remain in full force and effect. IN WITNESS WHEREOF, this Fourth Amendment to the Manager's Agreement shall be effective as of the day and year written above. Dated: THE TOWN OF TIBURON: Ir / i' Mayor, Town of Tiburon APPROVED AS TO FORM Z~~ Ann R. Danforth Town Attorney, Town of Tiburon EMPLOYEE Margar A. Curran Town Manager, Town of Tiburon 2 TOWN OF TIBURON 1505 Tiburon Boulevard Tiburon, CA 94920 To: From: Subject: Reviewed By: BACKGROUND Mayor and Members of the Town Council Town Attorney's Office Town Council Meeting December 5, 2012 Agenda Item: Recommendation to Adopt and Authorize the Mayor to Execute the Fourth Amendment to Town Manager's Employment Agreement On October 17 and November 7, 2012 the Town Council met in closed session to conduct an evaluation of Town Manager Peggy Curran. In recognition of her outstanding service, the Council offered a contract amendment that would provide a one-time payment of $7,500, as incentive to continue in the Town's employ. The Manager's original 2006 agreement provided financial assistance to enable her to live near the Town. The agreement further provided that loan repayment would be due and payable within six months of the Manager's separation from Town service or if the property ceased to be her primary residence. The housing market has changed dramatically since 2006 and the sale of a home can take a year or more. To reflect this changed market, the contract amendment would also allow greater flexibility in repaying the loan, including a repayment period of up to two years. FINANCIAL IMPACT The adopted municipal budget for the Administrative Services Department can accommodate the proposed modification to the Town Manager's compensation. RECOMMENDATION Move to authorize the Mayor to execute the attached Fourth Amendment to the Town Manager's Employment Agreement. Exhibits: Fourth Amendment to Employment Contract Prepared By: Ann R. Danforth, Town Attorney